Which of the following statements regarding earnings per share is false?
A) It is reported on the income statement.
B) It increases when net income increases.
C)It is based on the average number of common shares outstanding.
D)It would not be affected by an extraordinary loss.

Question

Quizplus · Accepted Answer

Extraordinary losses are reported separately on the income statement so they would not affect the calculation of earnings per share. However, they would still affect the overall net income of the company.

Which of the Following Statements Regarding Earnings Per Share Is